from chinese. really hoping to sit this one >> absolutely. out until things calm down a >> you are calling it -- little bit. >> you think four finger johnny the guy getting fine, the landmark has caused a selling frenzy in hot out at the off for having a chinese hang seng dropped 2100 points brokerage firm getting guys over 60% to mark her biggest don't have high school education in the market the end the happiest? single day drop. >>, of course, no the. >> on grave of china goldman sachs out with saying buy at these levels in china in fact over in tokyo, japanese stocks took a turn to the south. saying calling for stock market average to go up 27%, the nikkei lost more than 3% as from where it is today so they heard the exporters and where charles do you see that growth coming in china south korea the cost they marked specifically. >> you know, mayor giuliani a four-day losing streak, losing was on earlier said 700 million people in poverty people move from poverty to 1.2%. maria: tracey, but they ask you the middle class that is where you get that growth, you to me what is behind this is what the catalyst is. one of the things we have to talk about, you know, thank leon of the chinese stock market you bring this up demographics is up more than 100%. when you look in what the has come from, someone did they come i think excellent europe japan the demographics are bad china down but obviously a lot of more shifting that way too but the pronounced than that. what are the behind this? shift that creates one billion people into global middle class why you sell more iphones out of america than in

america, like caterpillar reporter: i would tell you two selling 7% products outside of words. margin financing. america, than in america, so, they could find a way to we warned about a month ago the continue to delicate balance long positions exceeding communist central plannicapital. $2.1 trillion about a month ago. as the money was pulled away and all of a sudden we change from >> the chinese leadership cautioned managed capital, you the change from a crazy bull market to a crazy bear market. have a dynamic run by central the solution as it now appears the chinese government has cut planners i think a lot of transaction costs for transactions made on the people saw this a mile away shanghai's dark exchanges. right we have been talking about this sort of your classic bubble they have lost 30%, of their value, in the today they have pledged stock market, just over the liquidity guarantees that most last 24 hours. of the china insurance regulatory commission rules on maria: 3 1/2 trillion dollars in market value in three insurance and companies can weeks. >> roughly the equivalent of invest in blue chip stocks, but the entire economic output of the u.k. last year that is nothing seems to be working. stunning but what you can see a lot of people are drawing nothing seems to stop the bleeding for now. the analogy 1929 there are maria: brockway, do you think some series similarities the government suffers to halt including that you have the the trading of the comp names tremendous run-up about actually was a bad idea,

unbelievable going to let actually worked against the wealth creation at the attendant excess with it. situation? obviously it didn't help that i'm wondering if people thought that us know the quiddity and a >> -- the creation and facts of that growth or did it grow reason to double down and sell. up in anticipation of that monica that manufacturer came reporter: i actually do not to fruition. >> i think it had went up on think so. pump and dump inspires new a lot of economists in china and traders think the government what chinese guise shl doing should actually close down the is it insider job no i a pump market altogether for a couple days for people to calm down and dump what is centrally planned think about what they want to do going forward and give the capitalism. >> that is right. >> that is the paradox, able government and policy makers more time to conjure up more to pull it off until this solutions. the short answer is no. point we will see if they can move beyond, this i think it these come in is actually not a probably will. higher order for the government but -- >> he was first president nixon to go to china obviously to hope their trading is since then trying to massive voluntarily following to report to halt their trading. as of now it not a policy from experiment to turn this beijing as these individuals are economy from expert led to doing. consumer led that doesn't maybe the government will shut down for a couple days. happen overnight. >> it doesn't started in 1977, a running joke on the internet of people saying no solid, no 1978 ping giving farmers

herding. property all the properties the deposit owned he started maria: there's been plenty of with farmers, then moved beyond that, of course, and pain already. we will see you later on this hour of life on the ground in beijing. the philosophy is that if tracey chang, thank you. people have choice in their economic life, if i can go the author of the coming into a store and have to collapse of china. choose between say 10 brands of toothpaste ultimately you joining us live via skype from hong kong. thank you for joining us. will demand choice in political life that has been is this the beginning of a youth the philosophy for us even in predicting the last several years? with -- sort of the same. >> it could very well be. >> they are trying to this is the beginning was last july and loaninger term story trying to september when you have the give people a choice instead market really start to pump up of owning cash under mattress real estate owning stocks and and i was really because the central government talks at the buttons, so again that is big market. they got behind the soft market -- a allocation shift what goldman sachs gets, that what rally. the reason they did that is because no other attack tix were is we get the reality is there is classic mismatter what you working to stimulate the want versus what you are going to get doesn't happen at the economy. monetary stimulus has failed. same time responsive goldman sachs this is from attic -- since november with it for leverage positions not big reductions in market rates and enough to trigger a market through reductions in the collapse as if we haven't seen reserve requirement ratio all that already he still says with very little effect. that it happen call ising fiscal stimulus they can't build hinging on success of any more cities said they were

really between a rock and a hard unprecedented government efforts to revive competence place and decided the only thing they could do which is really reckless as to pump up the among individual investors. market and create a wealth >> said part of the effect and pay off a lot of bad. maria: what is your real thesis behind the coming collapse of impassebags to halt shares saying making it worse, the china? government doing that all. is this a policy situation or fundamental economic story do >> it is halted in u.s. first you predict the collapse of what is the collapse look like? thing i think sell -- >> not that we -- again, may very well be different this >> yeah, a fundamental economic story. it doesn't make sense. time everything these days it's in the limits of what it different but the stock can do and essentially right now market, that has been haltdz by central planners that doesn't get absolutely demolished after the halt the chinese government talk happens all -- >> hong kong they stopped about fundamental reform that they have implemented very trading there in opened i want little. as a matter of fact, she's in relatively calm but hong kong pain has been secretary of the country and it's really pushed more established mocredible than it in the mode of doing things like creating state monopolies shanghai, recently global and all sorts of issues holding the economy off. markets did not include china. right now they've reached the >> right. limit of what they can do. >> what is implication of they are desperate. that. >> one of the most wild held they've lost credibility with indices. the chinese investing public. >> you are not ready for prime

that is for them the central time yet i think again, the world saw this we knew this, problem. they can say what they want, do and, you know, just gets back they want in terms of buying to -- it you know this interesting experiment, and shares but that isn't stopping the bleeding. the idea of control, i think, they have no choices right now. by the way, they communist leaders understand to your maria: let me ask you the same point some point not in question of our reporter in control of this country right beijing about the move to halt now they have to make the people happy, find a way to trading of more than 200 stocks. just like greek leaders there if that were done anywhere else is a lot of similarities between both and the idea they would be massive panic, sandra taking pain, market even worse than we see right now in china. back to america americans we've got to take pain right tracey in beijing said she thinks i need to be done and a now equivalent of jumping off lot of people are going to the two story building you want to hold off jumping off a 20 entire stock market to close story building. down. what is your reaction to that the government did in terms of >> the emerging markets taken halting of those stocks? >> first of all, most companies to the shed today because are trading because they asked the government to suspend thooefth china in them emerge markets? >> think in time dollar goes up people look for about trading. liquidity emerging markets get some company shares have been smoked this rebalance trade is suspended because they have a 10% limit each day and therefore interesting, maybe on the this is not a matter trigger. other side though because a lot of people said look i got i think this is really a bad to get into kline going do

liquefy weights are going to idea because it does create change i good the to sell panic. i know people are talking about philippines long china -- the only solution left is to maybe a bit there this is close down the market. hong kong did that in the cobra going to be petrify people. >> if i am trading watching this sell-off i am wondering 1987 for four days and it more where the opportunity is, we or less works. don't -- but the situation in hong kong >> talking about dollar and what you see in china right now is so different. treasurys. i don't think it will work. >> listen we had 3 point point it will create panic and people reversal yesterday not forget that right 00 day modifying like jude rogers will not go into china going to check it average this is he sell-off in out. china fibonacci pullback, 50% maria: that is what i am saying. the fact you know we could see the government decide to stop retrace meant people salivating don't be surprised at efforts to rally markets. trading, why would any foreign >> i love that, 200-day moving investors put money into a market when there's an open question as far as getting money monkey, you are saying my new case is global slowdown, out because you have no central planning gone bad but liquidity because the government held 200-day, i mean -- i mean may shut down trading. good god! the reason why we are slicing >> yeah, that is just common sense. the reason why people in china through this right now people coming to the raisings that are talking about these tail wagging dog is globally extraordinary solutions is because there's no alternatives. growth slump period. >> was that greece yesterday at this point they are in a

the fact we did not keep going. >> i think, you know what i panic mode and then they talk about the sentiment and rational think we hit point in greece the sense less important. selling on the part of public by >> yes. >> i really belief there was a point yesterday investors said beijing officials are in that you know what greece were, way as well. potato figure it out sit it a lot of disagreement among out, stay in, i really -- senior technocrat and talk that listen obviously,how they heads will roll including the head of the china securities react meeting on sunday, now regulatory commission in the instead of 19 it is 28, you can't figure it out with 19 premiere of the country as well because he put his staff on this bring everyone. rescue over the weekend and it >> manager -- clearly failed. >> it is ridiculous. >> charles thank you. >> thanks a lot. >> we you later today on we will see problems from a making money with charles payne, by the way, as we go to political system resulting from the stock market meltdown. break is that a brand spanking new apple watch on keith? trained to stay with us via bus >> fitbit. to talk about this morning. the central bank of china >> all right that looks like the apple watch. minutes after the composite was >> i need to lose we the. down as much as 8%. >> we are watching commodities the bank saying it will assist this morning own sell-off in china you heard here last hour the finance companies to obtain and the liquidity mostly through from criesr former chrysler loans and bonds or whatever can stop the bleeding. ceo bob nardelli said time to we say no impact just to. buy copper. >> the "the wall street journal," ceo barclays antonio the chief economic correspondent jenkins got fired eurozone john has a map on the phone right now. managers set a sunday deadline

great to get your take on this. what is your observation and for new greece deal new york city holding a parade for the u.s. women's soccer team. does this change the playing we'll be back in a moment. field further central bankers? >> i think it could change the playing field. most importantly the fed. ♪ slover? let's get to that in a second. i will make two points about what i see happening in china. the stock market was disconnected from reality. stocks are 32% from a june but still 72% a year ago is basically a bubble in chinese stocks in the bubble is now deflating. but i find strange is the bubble happened in the first place. bubbles usually have been when mitch economy was slowing down in coming to grips with the reality. the other point is this raises real questions about how chinese authorities are in our economy and financial system. that is something getting into the market right now.

when attacked officials and other u.s. government officials, they talk about the leadership in china and its capabilities for managing the economy. they say things like china has a lot of tools for dealing with the slowdown. china has saw these two as the u.s. doesn't have. i think when you see the chinese leadership scrambling to do at the stock market right now, do you really have to ask if it is any more capable than the u.s. was during this bubble in the last two years. in my mind, china has had three bubbles. they had a bubble in industrial capacity investment, real estate and now a bubble in the stock. you really have to wonder if they are going to be able to get off this safely. maria: as money has moved into equities over the last year, year in a house, you didn't see the fundamentals backing that up because you see an economy slowing down.

earnings slowdown from the major corporations fare, but stocks move up. >> this is an example of chinese authorities size stock market as a solution to their problems, but ultimately stock market values have to be grounded in reality. a government trying aggressively to manage the economy, but ultimately market forces displayed there will and we saw this happened in the industrial sector with commodity prices. we saw it in the real estate sector with wrist day prices and now we see it happening in stocks. the chinese government cannot make all of these market movements go in the direction they wanted to go and that is the problem they face today. maria:.me ask you your take on the relationship of the fattened bank china. the federal reserve coming out with minutes today. we will hear today on its last meeting. but are you expect in and do you expect the federal reserve

officials should now be reaching out to the bank of china in the face of what we see there. >> the fifth connection isn't great. they have regular conversations with officials at the european central bank with the bank of england. it's always been a bit of a mystery to the side. i am not sure that the first call will be the on a day like today. this has definitely gotten the fed detention. china hitting commodities urc in minutes mentioned of prooirs in chicago, good china showing up in the last morning to you. >> good morning maria oil few. i've been saying for a while now prices did try to mount a that china is a figures towards recovery after being lower turned a little bit lower, on increase. the economy and china's 52 times bigger than greece. concerns u.s. stock market will shake our follow through, a slowdown could have for the fact that the u.s. economy. and some concerns in china we did get a little bit of import that has real effects on optimism on reports greece patient. trying to get inflation up to asked for a bailout package 2%, commodity prices are falling from the eu some of that and the worsening chinese economy where to put downward optimism is slipping away

right now other thing traders pressure prices to make it hard have to look at today, we get for the fed to reach its goals and reese interest rates. oil inventory reports today that could be a market he mover at this point, because we really want to keep an eye maria: in terms of the minutes on u.s. demand, right now when say, any surprises from your end? >> we will see evidence from the talking about the demand for oil, the u.s. is the only game in town, with the uncertainty splitting june about when to in china and europe so those start raising magistrates and how aggressively. numbers have to be pretty strong to get these numbers, some people thought they make a we did see a very strong one time this year, others two times. given what we see in china and gasoline number in american he greece, the people saying one time are winning now. petroleum ought to industrial maria: that is what we heard yesterday as well. metals, copper plumb palladium those markets are kind of an that may very well dictate that indicator of the fierce about what is happening overseas the team and we will communicate especially in china after the that in the coming. big sell-off so a lot to watch commodities are going to be moving, back to you. >> i think we've seen china takes center stage. maria: thanks very much, greece is in the background in stronger dollar weaker the weeks ahead. commodities sandra you think this is all going to show up maria: ahead of this new in second quarter earnings deadline. great to have you. when kick off tonight. thank you for weighing in. >> certain is the oil, we saw straight ahead on "mornings with last quarter played a big part maria," concerns over shop waste in the earnings picture but have you ever -- i just said of markets around the world.

one person does not seem too it a viewer -- >> sorry, there is going to worried. ian bremmer tweeted china's always be a buyer of raw materials that is china, china stock market down 30% over the is the largest buyer, nardelli past month. saying buy copper you have to up over 80% in the past year. look at the situation, see what opportunities are going can people get a grip? to come out of there, keith gets paid to do that you we will see if the markets get a quantity just stick money under a mattress everybody is grip following the latest developments this morning. working on with money out of overnight in asia. china money out of european take a look at headlines. markets out of u.s. equities, where i is it going you have chief executive anthony jenkins been shining a light on button has been fired. he is leaving. markets. >> i feel like on island by the eurozone set eurozone said myself long bonds god forbid, sunday as the deadline for a new deal with greece. new york city will hold the u.s. by the way, look what bonds have done during this women's soccer team. we are back in a moment. slowdown, at least a period stay with us on mornings. people said greece not just greece fte fund futures last week 40% chance allegedly the ♪ fed would move september this can a business have a mind? morning what is it 10%. >> you think off the table pretty much. >> you always said you for the longest time not a rate hike in 20 is a. >> no because i have a bearish global growth, if you think

rainbows and puppy dogs you and i talked about that don't forget jobs' report revisions prior two jobs reports down a subconscious. usoe slowing europe slowing a knack for predicting the future. china slowing why would you be reflexes faster than the speed of thought. establish on grow can a business have a spirit? bullyish on growth. >> earnings down 4.3%, but -- >> rb is permissivot people can a business have a soul? got train wrecked long earnings into january remember can a business be...alive? how bad january was a dollar oil all that rallied a reflation trade i call that sucker trade suck everyone into now better oil up i can when you do business everywhere, own stocks kabiolike -- the challenges of keeping everyone working together can quickly become the only thing you think about. >> how many production off-line commodity prices there is a supply side of the equation not just demand there is supply driven story goeblth when you see acres companies listen to ceos are they taking that's where at&t can help. at&t has the tools and the network you need, production off-line because of the lower prices, that starts to make working as one easier than ever. happening, that is when you start to see the turnaround virtually anywhere. this sflies cal coulda reports leaving you free to focus on what matters most.

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maria: welcome back to a developing story. we're tracking the massive selloff overnight in china. take a look at futures this morning indicating the weaker opening for the u.s. market on the heels of a sharp selloff once again. the chinese stock market down 30% in the last couple of weeks. top story of "the wall street journal." china's travel tech commodities. the three-week selloff pulling prices for oil as well as three months closing yesterday at the bubble. the group in chicago and i guess as china's economy slows down, though the last oil. >> that is the thinking behind this outlaw spirit oil for the entire commodities selloff is the first market to break which

shows you sensitivity to global market events. if you look at oil over the past year, it is reflective that foot is going on in the larger economy. when the expectations about the economy are getting better, we sought will really improve after quantitative easing. when they start to turn negative, oil prices fall quickly. the other thing about china you got to talk about the industrial metals that they got slammed . . over the last couple days. >> welcome back hillary copper, platinum, palladium, clinton giving first interview since announcing run for white house, a major theme in that zinc have taken it on the chin because china is the biggest interview was trust. consumer of all those goods. something that mrs. clinton has been struggling with as are numerous controversies train to the biggest consumer of about her e-mails family those goods and why we see the foundation have come about a entire commodities context. fox news poll shows 45% of a similar situation. american voters view her as honest, and trustworthy. >> we see this today for your vote. >> people should and do trust the global fighting inflation. me, and i have every confidence, that -- that that will be the outcome of this

but we see in the stock market is an outflow of inflation. election, i cannot decide what what we see in europe is a the tactiattacks on me will be concern about inflation. matter how unfounded i am well with all the quantitative easing aware of the fact that it is over the last couple years, your job to raise those, and we will do our best to respond turning the corner around a little bit with insurgencies in to them. china and reese's guide the maria: joining is for more michael berlin the founder and deflationary fears and by the commodity story such a big ceo, hillary clinton is to say hurry. strategic advisor good to see. maria: we should point out that >> you thanks for having me. selling has reverberated >> what yoos was your take on throughout asia. japan had a seven month low interview. right now. >> i did i understand spoken we will get back to you. to thousands trust is earned is not given, hillary clinton doing everything trust me is cheryl casone as well as gary not going to work she has to sheffield and you've been give voters specific reasons to trust her i think we are covering the china story from going to see that coming the consumer impact. forward. >> so -- >> well i would say the most prominent scandal for any >> certainly. asking ourselves what america companies have the biggest exposure to china. politician particularly running for president those look at apple. that reyifr focus preexisting they are selling more funds in china and the united states. people like qualcomm. notion or negative ideas about dunkin' donuts. that candidate when maria talked about foundation clinton cash scandal rein

forces negative impression over is@five. about hillary clinton 25 years not honest and not trustworthy why you are seeing the spike all these american companies that want to watch today. the other part of the story that in untrustworthy numbers you are right the fact they should was so interesting is the bubble as to say oh, seem should and they've created in the chinese market because of what the do trust me people who already have that kind of trust government did was put so much worthiness don't have to go liquidity into the system. and say. >> it i think that is what you you've got 90 million retail are saying hillary saying i've investors in china. been on scene 23 years, since that is more than members of the communist party. 1992. and she says people know me i am predictable you know i am going to stand up fight you know what i am going to do, we're talking about farmers in people -- very few people are rural villages that are buying stocks. not familiar with her i think they have no idea what they're you are right make a good point she has to give voters a doing. they don't have education. that has created the bubble. reason to vote for you are hesitate are are silly it is more of a concern right mistakes i think e-mail thing now than greece. not giving people access i think her campaign realized maria: kerry, want to get your that these don't engender take on this real quick. trust i think we are going to see hillary giving voters >> world's second-largest economy. we are much more with them than specific reasons to trust her. >> other problem in this greece as well. interview she went there she 9% of the gdp is the largest in played the victim card, again, the history of the world. after 25 years of playing the victim card it gets old.

>> what did she say. maria: we will talk more about >> well people were asking her this with kerry and cheryl about trust worthiness thing coming up. we will take a sharp rake and and she was saying well these shift our focus to greece coming up. are attacks leveled against me new developments ahead of a and my husband a long time, deadline for greece to come up that was so reminiscent of with a new program for euros to 1992 like the vast right creditors. back in a moment. conspiracy against my husband and me in the bunkesh attacks in warranted most criticism the last 25 years of all scandals turned out to be true playing victim card when she is trying to be first woman president does not work. >> i think really what i found out about trust, and being trustworthy earning trust is transparent, what voters want from hillary be traint with us tell us what you are doing why you are doing it tell us where you are going to go i think that hilary is signaling i am going to be radically open i am going to start talking one-on-one going to -- >> she can start turning over whehe trusts onlyon duracell quantum server to the government nobody is going to believe

because it lasts longer in 99% of devices. anything she says about e-mail other scandals. >> i think hillary complied with the -- been radically openly i think has to keep going forward that is what the issue is the issue is -- in earnings trust if you earn trust through actions not through words. >> you can't allocate trust by demanding it i love that how you framed that up, how about respect same thing in pro sports respect is earned every day on the field note allocated, how does she get to the place where she is actually respected on the merits of her campaign, on the merits of whatever it is wall street maria and i talking wall street is not long hillary on respect in something, i i think. >> a lot of people wall street -- >> i think that is predictability comes that is the benefit of being on the team 23 years you know what she is going to do with a policy is going to be you know that she is going to get things done going to stand up and filed for the issues, that are important. maria: how do we know that michael how do we know? >> you can look at solid track record at track record, that

you can't be cracked. >> name one achievement, secretary of state just name one -- >> uh, fighting for woman's rights children's rights bringing stability, hillary, really sort of got america back after what happened with bush administration where we lost -- hillary did a great job to get america back being world leader. >> right now our friends abroad are questioning where america is, so that has -- fallen back i don't know. >> since she left office you are making my point. >> i don't know that -- about since left office or it was her fault but truth is we lost a great amount of stand with our friends around the world. >> i don't think that is true i think that what we're seeing as we have been talking all morning, instability hits regions i think what we are counting on is having issues asia having issues turn back say again u.s. is the most stable economy in the world, so i think the opposite they continue to lead so many

different areas. >> to keith's point hillary on wall street you were sig particular on wall street -- facts and some big banks but that is actually hurting her with democratic base this why is bernie saunders socialist a 40% of the vote they don't trust her wall street -- that is true. >> how does she walk this balance,michael where as she is trying to be every man's you know ask, champion at the same time, she is in some regard you know, in bed with some wall street firms, and at the same time, she is trying to appease the left by saying look, you know business he doesn't create jobsets. >> one of the wonderful parts in the democratic party being part of democratic sort of primary voters is that they don't -- uh they don't just fall in line that they are open, i think what we are seeing with bernie saunders, in hillary commented i am not defending her on this but look i wanted to have a discussion,

bernie saunders getting great crowds in iowa are getting ashley: this is a stop-gap great crowds i actually think that is why she did this measure around 29 billion to 30 interview, as i stand -- this billion euros to provide is happening because hillary immediate financing for the greek banking system. can't run the campaign that she was running let's 16 there hasn't been any amount put republicans have their discussion, and i am just going sort of stay hidden scenes she roifs she has to on it, that would be reviewed, a similar request was made ten get out in front and center, maria she is -- the most days ago and was rejected. important candidate of the 18 the bigger story is greece has or 20 candidates running for president when i showed you until the end of tomorrow to submit fresh proposals to metrics, the vast majority of receive another bailout and then the conversation before tumble was all about hillary, trump the full e.u. summit will meet sunday to decide whether it is has sucked oxygen. >> why the most important? going to allow it or not and if not greece very well could be at >> because she is -- is o you of the euro zone. five days and counting. know we look at all the -- probabilities hillary is most likely to be president. maria: we know what their program is. and she was really -- has the we know when greece is willing vast majority of the conversation was around to give on in this new program. hillary what is hillary doing ashley: that is a good question. now what happened last week tumble sucked all the oxygen it is never enough in the eyes of some. out sts election republican talking about the big plan, they party is now upset, because

have to give up a lot, greece not a trump issue any more it wants debt relief, this is the is a republican issue. >> maybe republicans would utmost importance to them but argue that he brought a lot of energy to the debate? many other countries say you >> the only incorrectenergy is e can't just restructure your debt and they won't do it and without that restructuring, the imf going to stink republican party. >> not showing up in polls. >> he still has 75% of the -- reported greece is going to be on an unsustainable path so whether the european creditors are willing to work and greece sentiment negative all on that point will prove sentiment focused on donald critical to the future of greece trump now you see the jeb bush you see rubio all candidates in the rose coin. distanceing themselves from maria: thank you, ashley webster him. >> at the republican base now in athens. is putting him up in the sending position, and iowa new chinese market setting the tone for global markets today spooking investors in the united hampshire. >> terrible -- states, back to china live to get the latest on the ground in beijing, back in a moment. >> people saying running ted troo cruz stood up for him. >> the only one -- let me take ted cruz rick santorum, sure fiery way to lose. >> a conviction. >> very quick on did dmaekt race i think joe biden will get into the race president obama will back him. >> bottom line from monica stay with us back in a moment. can a business have a mind?

a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

maria: developing stories this morning, joy on the stock market sell-off once again. let's get to the asian market, tracy chang tracking action live in beijing. what is the story on the ground?

tracy: bloody trading day, it has rippled across regions of the markets, in less than a month, a stock market wiped out more than combined gdp the last 11 years, today the joy and a composite lost another 6% despite beijing policy after policy trying to shore up confidence. let me remind you 43% of all companies listed on the shanghai stock exchange, 1300 companies have been halted from trading and they hope to said this out until things calm down. this also cost hong kong, the hang seng lost 2100 points over 6% to mark the biggest drop in history as the market is caught between greece's debt crisis and a stock market, and japanese stocks took a turn to the south, the nikkei down 3%, stronger yen hurts their exporters and in

south korea because the mark a 4 to take a final look. day losing streak down 4.2%. while this drags on and time really is running out. we will have to keep eye what is going on here in greece. ma atms are running out of money, japanese nikkei average. more and more. the one behind me continues to thank you, tracy chang live in still work. beijing. but estimated by the end of one of the top stories in the tomorrow it will be much harder journal five things peculiar to get their hands on cash. about the meltdown in china, the that is going to create more editor of china wealth and fear and anger frankly, maria luxury is the head of a original reporting joy on a wall street here in greece as we wait to journal join the conversation find out what happens next. live from hong kong. maria: pain on the ground thank you very much for weighing unbelievable when you look at in here. people's families and lives as a can you go through the things result of all of this. you find most peculiar about see you later. ashley webster on the ground in this market meltdown? athens. >> half of the companies donald trump has various business relationships gone sour visiting china have been suspended so markets would be since the campaign announcement. nervous about stocks and not able to trade. see the man benefiting. in china people are happy about back in a moment. it. ♪ and escape from the current meltdown. maria: people look at that and say i put money in and i am taking my money out, no

liquidity but what you are >> welcome back to another tennis channel wimbledon court saying is people in china are happy about it because it was report. special presentation from fox business network. i'm brian weber. something that stop the selling. serena williams won both grand >> another factor is the policy slams so far this year the world usually where stocks are halted. number one is looking good. at all england club, top seed had to fight back from a set and restructuring, the bull down against two-time aussie market is always a signal of stock market stocks going up so open champion victoria azaranka. that is something to speak to. maria: and you say the second that is what she did. most peculiar thing you right in the journal today as the taking control in the third set government is behind big to wrap up the one after just state-owned companies to pump up over two hours on court. she will take on maria the market. >> the stock, small stocks have sharapova. been falling 10% daily limits sharapova hitting 20 winners and every day but instead they had taking six breaks in the three-set win. to choose the company, needed wimbledon prime time on tennis very little help. channel after the gentleman quarterfinals yesterday. for example, the market, stock starts at 4:00 p.m. eastern. has soared 29% in the past two weeks and a market cap is almost

as big as google. as the market tanks, the government should focus on companies. the needed more. maria: fund managers have to cough up money to buy their own funds? >> yes. manager is taking personal responsibility so i spoke to a retired, at chairman, management company, but retired, recently he was told to take half a million of his own money to buy the fund of his company and came by downed for anything that is stable, he has to buy stock funds so they are held responsible for it. maria: above fourth one you mentioned is the security regulators expected to save the market. that is what everyone is thinking about because there are all these government moves to intervene. >> yes. when the market -- people always

blame the regulator. in the normal market their jobs should be looking, going after insider-trading, stock market irregularities but in july that they have the task of signaling of bull market, trying to pump out the market and now the stock market tanked and they are trying to rescue it as well. they are playing many roles. maria: you say in the fifth item to note is always blamed the foreigners. why blame the foreign money? >> always the conspiracy theory, market collapse happens at a time when china is trying to open its capital market at a gradual space so currently foreigners of 2% of the market cap have limited ways for ltd. very limited ways to support chinese stocks. maria: that is a critical point. gordon is still on the line with

us, joining us, he has written the coming collapse of china. your thoughts about these five items, saying it is peculiar. we knew it was peculiar on the fundamentals that did not match the moves we have seen on the way up. >> it is up market determined by the government and the efforts to bump up the stock market since last year really has been a reckless tactics and we see this. the communist party should be stronger if that is so he has been read nationalizing parts of the economy and the stock market has helped him because he can go so, same time next week? in to buy the shares of the big well, of course. banks on a cheaper level and in fact we have seen stocks with the big banks increased by their 10% daily limits this week, an sup jj? working hard? here at the td ameritrade trader group, they work all the time. indication they are trying to working 24/7 on mobile trader,

read nationalize the economy. rated #1 trading app in the app store. one thing that is peculiar is it lets you trade stocks, options, futures... the head of the central bank even advanced orders. and it offers more charts than a lot of the other left china today for russia. competitors do in desktop. this is an indication of i don't know what, just doesn't want to you work so late. i guess you don't see your family very much? be around when things fall i see them all the time. apart. this is an indication that they did you finish your derivative pricing model, honey? are disconnected from reality because he should be on site for all the confidence you need. td ameritrade. because the central bank is the you got this. most important part of the chinese central government that is involved in the rescue of the stock market. >> this was canceled out any thought to these women. some of these women work their maria: great point. you know you are in trouble -- whole life to get into this position where they become miss usa. nobody thought it about it from looking at the blame game, who is to blame in shay ryan but you made the grade point earlier nbc. what about the women all arriving right now. well, we don't care. that investors were uneducated they couldn't care less. going in and the government led maria: that of course presidential candidate donald that saying you want to be trump with me last week, reacting to nbc's decision to invested in the stock market including a margin. drop the miss usa pageant over >> you have a country where these uneducated investors, his comments on mexican farmers, they believe the immigrants. president's birthday the stock the pageant is rescued finding a

market will go up that day, that new home on the recent channel. is the way they think and one of the things that created the we have the chairman and ceo of bubble, the four things, margin the reels channel. debt and liquidity and you also >> nice to be here. maria: why the decision to take look at this uneducated retail up the miss usa pageant. class of investors and a real-estate story we haven't talked about in china yet, >> set up piece, one place i agree with donald trump the creating this frothy environment that to gordon's title of the women who worked for this all book the coming collapse of china all of this leads to the their life for their dream. potential collapse of the economy that we as americans community of baton rouge, made a cannot ignore because we are tremendous investment. completely tied to this economy rolled out red carpet to make a in so many ways. home for miss usa. they deserve our support. >> the founder of so china the pageant itself, this will be joined as a few months ago and the 54th year televised the quota was the chinese coming up on sunday night. real-estate market has gone from to us that is worth fighting red hot to black cold and she for. was very worried about the next five days that's what we're doing. we'll pull together the best darn miss usa show that has ever valuations. >> analyst at moody's, all about been. the fundamentals, warren buffett sunday night july is 2th on is the largest, moody's largest reelz, america can watch it. shareholder, all about those maria: do you think there is any things, there is a good story to taint to the pageant given be told about shine and where it developments around donald trump? >> anytime a dark shroud of has come from.

since 1978, 500 million chinese politics settles over anything, have been lifted out of poverty, enormous growth rates, 7%, many particularly a non-political event, an entertainment event fundamentals are strong here, like miss usa i think there will there's also the debt problem, be some taint there. the gdp is 300% so is politics always creates hard feelings and takes time for some substantial. but yet you have the middle class chinese investors who of that to rub away. i believe this is about wants to protect their money, television and about they would rather buy real entertainment. it is about miss usa. estate in new york city or it is about these young women. it is about baton rouge. chicago or l.a. at than to buy i believe once the pageant airs real estate, they're putting on sunday night, i think the their long-term capital into the controversy goes away and i united states, they trust our think we all remember why we're government more than theirs, one here in the first place and why this is such an iconic american of the upper class in joy and event and why it has been going driving the investment we have seen in this country. on for 54 years. >> stan, nobody on this set, >> what about that, can you react to that? closer to the community and town the fact that money has moved of baton rouge than me, i graduated from l-s. from the real-estate sector and i spent a lot of time in to the stock market basically. baton rouge. it goes beyond that. was there a mentality shift on this isn't as much about the the part of the people that they first and donald trump, that is decided real-estate was one aspect of it. overvalued? >> real-estate prices were high this is about money and viewership and about the bottom line. you wouldn't do this unless it

in china with what is going up was good for you. in the past decade. what kind of ratings and viewership will you get out of this? >> i think realistically, reelz the people moving money away, these are more stable investments and what we are seeing now is money is going to is relatively young channel. we're family owned. we're one of very few independent channels left. be transferred to other this allow us to do things this channels. wealth management products, just when there is controversy. going back to basic products like water off of a duck's back. because people got burned. maria: good to have you weigh i tell you we'll probably not in. make money on the event. we are watching the oil market we knew that going in. as well, crude oil of of the lows of the session. bought the rights 11 days to go we head to the cme group next to which is unheard of in this look at the impact from the china sell-off, continue the industry but we'll make a great conversation on facebook, how effort. are you impacted by the china we'll have millions of people sell-off? aware of the network and get a tell us on our face book page, chance to watch other things. we'll not do ratings nbc would facebook.com/morningsmaria. have done. we're in 70 million homes, not click on the like button to get the latest updates direct, back in a minute. 110 million homes. we'll have respectable showing. miss usa contestants and city of baton rouge will be proud of what we pull off. maria: how important is this to the network?

you've gotten a lot of attention around this unfortunate situation for donald trump? >> well, look, attention is good and i listened to the earlier part of the show and people talk about markets crashing and who is finding opportunity and i think for us we certainly saw this as an opportunity for our network and a way to introduce it to millions of people who may not be aware of it or may not watch it regularly because we're not always on the best place on the dial. it is very important for us. we did something similar four years ago when we rescued the kennedys miniseries. maybe we're a crazy network, not afraid to run into a burning building when an important cause and this is for us. maria: stan, thanks so much. we'll be watching. good luck with it. >> thanks so much. maria: see you soon. stan hubbard joining us. reelz ceo. golf world rocking after tournaments pulled from trump courses and rory mcilroy's ankle injury. back in a minute.

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maria: global market selling off wednesday morning. it started overnight in july and. the selloff in china hitting commodity prices as well. we are seeing the market lose more than 3-1/$4 trillion in the last three weeks, chinese equities, phil flynn and the cme group in chicago, and commodity sector got hit because the

chinese economy is slowing down. >> absolutely. commodities down to a four year low, what is more amazing to me is commodities were getting hit harder after the big sell-off in china and is for a couple reasons. if you look at what is happening in the currency in shifts of the mood, we see a lot of risk aversion to the japanese yen. maria: welcome back. we're 40 minutes away from the opening bell on wall street. the other thing softening the nicole petallides on the floor of the new york stock exchange. blow a little bit, of the mick e nicole. eurocurrency rallying a bit, >> good morning, maria. that could be because greece we'll see if there is some actually asked for a former resiliency this morning. bailout from the e.u. these interesting enough we saw futures an hour ago at the low things were playing. the risk premium between the point down 200 points. a selloff in asia where the crude and the wti, the u.s. shanghai closed down 6%. it had been down 8%. benchmark has been stronger on the come back and it reflects the big concern is about china. concerns of the global economy lost over $3 trillion in equity versus u.s.. maria: oil back down to $52 a value last three weeks. down from the june peak. trying to hold the 200-day barrel, phil flynn, gordon chang moving average which it did is author of the coming collapse which is very impressive.

of china and joins us for one of goldman sachs see as rally. the hour. jim rogers is buying stocks. one of the issues with chinese nervousness on wall street. alibaba looking to the downside. equities is when you are in a desperate situation and want to looking at 77.20. get out of a market, but half of watch qualcomm, sina, all these the stocks you own our halted and can't take any money out you chinese related stocks are likely to be unsignificant sell what you can sell. pressure. back to you. you are seeing selling across maria: sina down 5 1/2%. the board, people like getting out right now because they were wabo down 4%. more trouble from donald trump once stocks opened for trading. as candidates distance >> that is certainly part of it themselves from the 2016 but also because the central presidential candidate following his controversial comments about government lost all credibility mexican immigrants. with chinese investors and the comments now reaching especially the smaller investors women's golf. driving this market over the last several months, basically we have the holly roberts at 3-quarters or more, right now of women's open at lancaster, those believe the central pennsylvania. thanks so much for joining us. government is not trying to help them, the central government rescue plan which was announced >> maria, glad to be back. over the weekend is intended to what you said is true. donald trump is experiencing help state institutions. there's a big disconnect right fallout in the golf community. here and this is going to be a

political problem, because lbpga prefer they would not like essentially this is going to to host the next corn meant at his course but they have only aggregate the infighting in beijing by senior leaders. three weeks to change that. maria: it is sparking selling they would like to do so. they do not support his everywhere in japan, you have the nikkei average it seven week comments. extends far past the lpga. low, a triple digit decline when espn moved their charity its market opens as well. celebrity classic from trump join me on fox business, michael national l.a. to pelican hill instead. they cited their commitment to bloch, kerri sheffield and diversity and inclusion are core cheryl casone, with me on set. values of company. let me ask you to connect the pga america moving grand slam of dots for us. golf from trump national to we at seeing a i huge sell-off in china. another venue. what does it mean for america's this is in october. stock market and how are this showcases four major american companies impacted? champions each year. this is huge event and he loses >> short answer to that is the on the surface not much. some juice as it goes in the golf community as different not a lot of u.s. companies are events begin to leave from his really attached to chinese political stocks that something sights. maria: is that the big buzz pretty much, holly, or worries interesting is happening, you have been alluding to it but that mcilroy injurying his there is an impact on ankle earlier this week? commodities and is not a fundamental phenomena and. will he play in the british open? what i am worried about is a lot >> rory mcilroy, yeah, i'm having trouble hearing your last of these folks invested in local question there. stocks in china, those stock we found out on monday via

purchases were collateralized on instagram, social media that he margin including bank loans and ruptured a ligament in his left that may include on an ankle. in the golf swing, as you know, institutional level inventories of things like iron ore and sandra, you're such a good copper, you see this, worries player, the loading of the weight on the right side and about a chinese banking system, left side and kind of torque worries there are inventories that he needs to get through the that were impacted. ball, this is really important. we don't know the extent of his it means for me as a u.s. investor two things, number one injury as of yet. i'm worried about a commodity he says he is day-to-day right related stocks that took a big now. but to defend the title at open hit yesterday or rallied in the championship next week he would afternoon. have to heal in a hurry. i am very negative on material stocks. so this places spotlight, if the second thing which plays rory does not play, places into that theme is eventually spotlight directly on jordan speith, the 21-year-old from china, as gordon pointed out, texas who is competing to win lost credibility, they have to his third major title in a row. come in with a big stinking mop >> holly, thank you, for that to clean things up not so much good golfer comment. to protect investors the protect debatable. holly, that being said, all the system to make sure the morning we're talking about banking system and the whole commodity systemize just where there is doom there is described stays intact. opportunity. talking about china. where you should be buying on that is going to involve basing that. in this case rory mcilroy will the chinese currency on dollars not be in this and not potentially win this thing who does that bring opportunity to? strong. and stocks and consumer and health care spaces will benefit jordan speith?

could he win another big one from a stronger dollar. this year? you take what is going on in greece and it all points to a >> you should absolutely be stronger dollar and at the top of the hour keith mccullough watching jordan speith. the kid said earlier this week he would like rory mcilroy to will join you talking up to the play. i know jordan very well. commercial for you guys but i am he is very competitive. on the page too. it would feel more like a for me that is the big thing victory, a third major with china. championship in a row if rory maria: that is a good point, a were to be there next week. strong dollar remains dominant but jordan speith is absolutely and you see situations like this who you should have your eye on. around the world, the dollar we have the coverage at u.s. becomes more of a safe-haven. open. mining companies, material standing next to him actually companies, these are the names when dustin johnson missed final that will take a big hit once putt and he was the u.s. open "the opening bell" sounds in the u.s.. >> several sectors in the is the will keep a close eye when the champion. he is amazing kid. markets open and 9:30. his family went crazy. spectacular moment for fox golf and everybody involved. would get the technology space, it really was. maria: holly, thank you so much. how many chinese listed companies not listed on the golfers at table, any other questions? nasdaq, and a lot of americans holly, good to see you. we'll be watching. own these stocks ended you don't >> hey, by the way. think you known them they are in by the way i want to tell sandra here at u.s. women's open with your 401(k) so get ready and handicap 2.4 below, can try to qualify and get in the field. major companies, consumer companies, duncan, doubling down she needs to work on the game.

in china. >> the majority of revenue is >> maria: do it, sandra. coming from china and has been >> maria, i can't work next great for these american couple days. companies, but watch out today. you have work to do. all of this will coming with a maria: rooting for you. question mark. raising the roof for sandra on >> to some extent china's king the golf course. could be america's gain if we see steals in the making, big selloff in china and we'll stealmaking in china, they bring you latest when we come flooded the market with steel, right back. americans seals of the makers stay with us. ld see a rebound depending how long this is happening and to the deck on international trade, the t p p is in a startup position depending how weak china becomes, china just tried to create an infrastructure banks, some european countries signed on and we are worried about the growing china tiger, i think this actually depending on how long this goes out could put us in a stronger position. maria: all good points. thank you, always wonderful to your body was made for better things share with you. than the pain, stiffness, and joint damage keith mccullough is with us, of moderate to severe rheumatoid arthritis. former chrysler at home depot p.o. bob barr delhi on why china before you and your rheumatologist decide on a biologic, ask if xeljanz is right for you.

matters as investors. this story is moving seriously, back in a minute. xeljanz is a small pill, not an injection or infusion, for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can relieve ra symptoms and help stop further joint damage. xeljanz can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers have happened in patients taking xeljanz. don't start xeljanz if you have any infection, unless ok with your doctor. tears in the stomach or intestines, low blood cell counts and higher liver tests and cholesterol levels have happened. your doctor should perform blood tests before you start and while taking xeljanz, and routinely check certain liver tests. tell your doctor if you have been to a region where fungal infections are common, and if you have had tb, hepatitis b or c, or are prone to infections. tell your doctor about all the medicines you take. ♪ one pill, twice daily, xeljanz can reduce ra pain and help stop further joint damage, even without methotrexate.

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when laquinta.com sends craig wilson a ready for you alert the second his room is ready, ya know what he becomes? great proposal! let's talk more over golf. great. how about over tennis? even better. a game changer! the ready for you alert, only at lq.com. >> welcome back. we are just getting breaking news that all flights in the u.s. for united airlines have been grounded. united airlines grounding all flights in the u.s. because of a technical glitch. but the stock of of parent is expected to open down. all flights in the u.s. >> sounds like chinese stocks. a technical glitch. >> are you supposed to jump on one of those next? the headline for demand? i don't know. maria: turned around due to sparks from engine is what one website is saying, but united airlines is telling us it's a

technical glitch. this he-- they were in the airline a week ago. sandra: they sent letters including to united airlines about collusion, about the airlines getting together to limit capacity to raise prices to ticket buyers, so-- >> i'm not buying the collusion as much as the sparks. i'm bearish on that. maria: china's stock market maria: it's a computer glitch, taking the nosedive dropping 6% they're saying they're grounding all u.s. flights. and what does that mean for sandra: the height of the travelling season. investors at home? maria: and i want to get to travelers headed to the and keith mccullough and airport. >> i would say that the chrysler, author gordon chang, the coming collapse of china and controversy created by donald with us on the phone. trump's comments, they're welcome to the conversation. thanks for joining us. your takeaway on the joy and a hurting his brand, but helping him politically. sell-off? maria: why? >> he's number two in iowa, >> these guys are slowing at an number two in new hampshire, the base, he's tapping into a accelerating rate on an economic great sense of frustration among the conservative base that this country is going to basis, without new news but in hell in a hand basket and the the market. with the chinese tried to do

bravest one. maria: unbelievable. which they should do is try to liquify or get their markets final thoughts of the markets. into a place americans have what's the most important. >> that all of central planners really taught them to but now we have a problem that the markets go down so the market is down 6% has gone bad. overnight but it is down 32% in you can print, but you cannot print growth and i think that's the last month and this is a big the next three to sings months. maria: there you go in china problem and relative to greece looking at a huge selloff china is a huge economic engine. overnight, another 6% selloff. maria: more and dreamed trillion >> i'm going to start looking dollars in market value loss. forward because the selloff can't last forever. where is there opportunity? you heard nicole, we heard john certainly lose greece down. roeshgs rogers on buying the a couple billion dollars of debt, greece has to blink. selloff. the issue is if they do secede buy it if it's 5% from here. from the e.u. will be a problem. but china, let's talk about it maria: i want to look at from ceo perspective. maria: a fundamental perspective. earnings. >> allowed to go! is out. we've got the fed out, and if you are in the auto industry and your sales were to go up all-star lineup. over there you have a big join us on mornings with maria exchange problem coming back, if you are sourcing from china is a and tom wilson will be here and good thing.

joe grano will be with us, and if you look in the valuation, 6 something to dollars of that is we'll revisit the stories of a good deal. the moment as we approach that second, doing a lot of work with sunday deadline for greece. charles in for stuart, have a great show. charles: thanks a lot, maria. we certainly will, stuart is on china, inbound strategy. vacation, but i'm going to take you through the big story and and the waldorf, and interesting money story today. this start, of course, china. to see whether the exchange has it's a bigger deal than greece and now our markets are falling the same intensity in buying the big time, falling out of bed real-estate. people would rather buy real because the chinese stocks continue to free fall. estate, and this big issue, and and the man calling for a the blondes they holes, to make prolonged market crash that will last not only through this the call or not. year, but all of next year w >> the top down slow down, those measures in place at a faster rate. when you try to do these things and get global and get liquid and real on markets at a faster rate because the top down that line news is flowing at a faster

rate puts a lot of risk on that kind of mechanism which the communication mechanism for all intents and purposes, stock market is up, that could be a good story and now it has turned into a certified trainer. you have over 50% of stocks that are halted. who is going to invest in that? maria: the issue of lack of liquidity, gordon chang, when you look at this experiment of moving this chinese economy from an export-led economy to a consumer economy obviously that is not an easy thing. hours that transition going? >> this is stagnant right how and investment is falling, to compensate for the rest of the economy. chinese ruler talk about reform but it means a stronger state.

and reforms opening up the country. maria: really interesting, thank you for joining us, appreciate your time. we will watch your writings, stick around, a lot more to come, the first time we have seen government intervene in this disaster in china. next hour following the latest on the market sell-off in china and greece, we talked to rudy guiliani in a minute.

maria: happy wednesday, july 8th, china is the breaking news story of an egg and a security regulators warning panic sentiment as half of the chinese market is put on a trading halt. look at the damage, shanghai composite down almost 220 points, a sell-off of 6%. ahead been down as much as 8% overnight, u.s. futures reacting to this news, global selling and equities markets, the dow jones industrial average expected to open better than 100 points. that is often the worst level of the morning.

joining me on set, keith mccullough, home depot's ceo bob nardelli n. sandra smith, a chinese markets added to the losses of the last three weeks despite moves by regulators to intervene and stop the sell-off. tracy chang has the details. tracy: a really bloody picture in asia. china stock crash, rippling across markets, no one is talking about greece anymore. the composite dropped 6% despite policy after policy, china shored up confidence, let me remind you 43% of all companies listed on the shanghai stock exchange, 1300 companies have been halted from trading, they hope the system goes out and calm down a bit and the mainland markets causing a selling frenzy in hong kong, the hang seng dropped 2100 points, that is

also over 6% to mark the biggest single-day loss in history as the market is caught between greece's debt crisis and plunging mainland markets and in tokyo japanese stocks took a turn to the south, the nikkei lost 3%, much stronger, 4 day losing streak, 2.2%. maria: tracy chang in studio, rudy guiliani joining us on set. home depot and hedge iris management ceo -- what is going on in china. >> be joy will be invested in each other so it will affect us and vice versa. they own a lot of the debt but we are seeing what lies beyond the chinese economy, something people ignored, going to overtake the american economy

which is 700 million people in dire poverty and no to the west. they never brought out which creates the authoritarian, the chinese government is afraid of what will happen when those people come out of china so the issue new rules on security to make things more secure and what they're seeing is their markets because people say who wants to do business in a country where the government has that much control. and remember very fewer percentage of people in china and anything in the market so this is not affecting china away the american market affect america. second, 50 gazette of many of those companies are owned by the government which is one of the reasons the government is trying so hard to bail out. this may be something we have to factor into our analysis, the chinese economy is not by any means challenging the the economy as the dominant economy in the world because it has the

volcano is it is sitting on. maria: the government -- >> 700 million people a going to come out of poverty one day and they want political rights and china has a plan for everything. >> so many people on china for so long, goldman sachs this morning. the stock market is up 27%. >> every moment in trader along the chinese chards, every chinese painters so intertwined and if we look at what we are saying, and the market policies,

the economy is throwing. it is not europe or japan or the u.s. it is china. basically a turn of the working population take away the 700 million people which is a big number, look at the core which is getting older and its fastest rate ever with their one child policy, this is a train wreck and expediting market policy. >> the trees have tops eventually end you were making a point earlier, the rate and speed at which they were doing this, 60% vs. 6% or 7%. that is a great neck pace and hard to maintain without infrastructure you talked about and so i think we will see this cycle and i am not sure it will bounce back as quickly. maria: china was the jewel of the world, whether american companies, european companies, it wanted to be in china because of the population growth. is it no longer representing the growth story for the world?

>> no, it is representing a growth story, 700 million people with tremendous potential, hundreds of millions moved into poverty is a tremendous success story but not quite the way it was made. here is what we fall prey to as americans and markets do. quince things are bad we think they are much worse and when things are good we think they are better. things in china are bad but not that bad. this is a strong economy and is become a long way. there is tremendous interest getting into the chinese market if you can get there. you will still 20 times more product than anything else. it is going to level off at some point but maybe what we are seeing is the kind of leveling off to something more realistic about how to evaluate china for the next ten years. maria: car sales are dipping like crazy. there are people who never owned a car who are going out to buy a car for the first time. those bets have been on the table and people canceling

orders in the wake of the stock market sell-off, price cuts from volkswagen, general motors, trying to figure it out. >> no question everybody was rushing because of the consumer opportunities and the nascar analogy, we had a rock. it was like -- so good news/bad news, car sales are down, less of a hit on the exchange rate coming back so it will be an interesting period. everybody saw the huge opportunity and i don't think we looked beyond the black swan, what could happen and how to prevent ourselves. >> the black swan metaphors opprobrium because what we have if we take your point and rudy's point you have a duration mismatch, over the long term, transition to the consumption economy. in short term the american stock market, ubershort term.

everything is supposed to be so fast, steve roach is one of best economists, he is at yale and basically riding on this and saying this is going to happen but it will take a long time. chinese don't like the risk of a slowing rate. if you look and auto sales, the corps spending core of the chinese economy, 35 to 54-year-olds getting older at the fastest rate meaning as they get older their spending and consumption and joy redefine the gravitational force with markets. >> the most important driving force in china are not the poor or the middle class or market but the party. the reason the money is in the market is because they want to save the party. the reason they passed the strike and the insecurity law is to preserve the party. that is the tension. the rising middle class who want more political rights and the party. maria: this is one of the first

tests we are seeing that the party faced because they are intervening and the market is continuing to sell-off. >> they don't know i know it will eventually crack. hard for them to realize it but when you bring that many people of poverty and they are better educated, access to the internet, the party is ultimately doomed. if in 5 years, is it ten years, 20 or a reagan/bullish thing where all of a sudden we make up and there's no party? >> i think it just cracked. this party, that is the best metaphor i have heard, it is reality, it cracked, they halted 200 yesterday, today they hold 1300 stocks, it is cracking because their communication mechanism which was the stock market just cracked. >> when will they sell more than 50%. >> a halt to ipos and buying, the party is buying stock to support it.

maria: then you have the idea of that if you want to so you sell what you can sell and so if you invested in companies that are not you will solve those companies because whatever you and so you get out of the market. they go the way of athens and shut the stock market down. >> it is a much stronger economy can't compare greece. maria: talking about the stock market. to they stop the stock market? people want them to shut down. >> if you can't handle volatility is like watching bitcoin, great idea, love china, loved it:but there is no other side of the trade. of the ban trading when things go down you don't have a market. you can't tell the market we have a new free market and shut it down when it goes down and only cheerlead on the way up. >> we finally recognize they have never had a free-market. the one they do have we have a strong chinese -- maria: before you go let me get your thoughts on greece, a new

deadline in to sunday. do you think greece -- >> very simplistic as of may year for the work. my answer to greece is go to work, but -- >> and europe should take a hard line with them. europe has got to solve a problem somewhere otherwise the european economy is gone, a lot more confidence in july and then europe and long term i am talking 10 or 15 years, they have got to stop it with greece and teach the rest of the european countries that are not following the german model lesson. maria: pretty extraordinary what has gone on and you have the new sunday deadline. good to see you as always. chinese market sell-off rippling into the commodities market in the last few days, oil prices of lows of the morning and heading to the cme group next, big headlines topping wall street journal this morning, the ceo of barkley's is out, anthony jenkins back, euro zone set of funding deadline for a new deal

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maria: welcome back, global sell-off under way on the equities market, europe is higher but look at futures year, we are off of the worst selling of the morning on futures, the european markets improved. and the selling in asia is prominent with commodity prices as well. the selloff is 6% on the downside for the shanghai composite and that led to selling throughout asia.

the nikkei average in japan and a seven week low. phil flynn in chicago looking at commodities which were sharply impacted by the selling in china. >> good morning, we did see oil prices, up across the board lower, they're coming back a little bit, apparently on the fact we are seeing strength in the european markets, partly because people don't know how bad china is. when markets don't trade it is hard to determine that, they were going to add a lot of liquidity. so far everything they have done hasn't worked. the other thing is look at gasoline futures, they seem oblivious to the sell-off, showing a lot of strength. part of that was because of private inventory report we saw from the american petroleum institute that saw the big drawdown in gasoline supplies, for the module i demand must have been very strong. maria: we will be watching that

with oil marriage we month low. copper hitting a 6 year low and global turmoil will commodities believe lower? want to bring from home depot, bob nardelli, sandra smith, chief wakulla. when you look at oil, use of the first, selling in oil as well as cap-ex, 1,000 rigs shed down. is this the beginning of another downturn? >> we talked in an earlier segment that overall consumer demand, and impact on oil. i hate to see 50% of rigs idol, that is the biggest revenue generators, job creators going the other way. i fear that if we do something, 3.6 million barrels, devastating force over all, interesting to see what happens. i am very concerned about oil. i think this setback in where we are going on energy

independence, it is a big concern, and exporting more oil than we are today, an executive order to be more globally competitive. maria: the embargo on that, food and oil. when you look at the charts and commodities doesn't look like they want to go lower? >> deflation at least in those quote make inflation expectations are done. a lot of people, don't forget we went through the mother of all deflation from september to january, ran a lot of people over on energy junk-bond scare, highly leveraged energy stocks, will obviously down 48% year over year, what was the big driver was still a big drivers the stronger dollar. if you get a stronger dollar because europeans are burning their currencies and is highly deflationary so if you think about that the supply and demand dynamics of whale, supplies specifically trouville, and if

you look at china on the screen with demand perspective it is not just oil, copper is a certified train wreck this week, anyone who came into july, copper and oil, the worst position market position you could have. maria: people look at copper as indicated for the broader equity market. >> don't talk about former indicators because it is the different indicator. god forbid we look at the transports, the industrial stock, it is not different this morning and all the leading indicators are bearish from global growth. >> i would be looking at copper and buying because copper is a key indicator and we use it in the industrial to think about pat appellates, general electric for the big industrials. maria: is critical to have construction. all materials. >> it doesn't have a shelf life so if you have got the cash and a strong dollar i would be -- maria: that is remarkable, one month charter copper, same thing

is happening with some of the precious metals, gold prices have been down but when you look at the industrial iron ore prices have taken a huge hit, china is the biggest buyer, and people are worried about the growth story in china, then you have to ask a question, with all the money coming and the equity markets, all the equity markets, and -- >> don't tell anyone, bonds were fantastic. 275. >>, one on my own view. maria: the same trade, you want to buy copper. >> i think the point, you want to bank it. trading copper right now. >> turn our attention to greece,

the euro zone hitting new deadline to come up with the new plan, ashley webster on the ground in athens. we will get him next and remember every weekday morning at 5:00 a.m. eastern setting the tone for markets. with xfinity from comcast you can manage your account anytime,

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get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. maria: welcome back. as volatile as ever, futures and the u.s. improved a bit from their lows, we're looking at a triple digit decline, overnight in asia, sell-off in china sparked selling throughout china, the country and greece requesting a three year bailout and is promising to implement overalls demanded by creditors after a deadline was set by european leaders for a new greek deal. ashley webster is in athens live

on the ground with the latest and i have to assume the markets have not reacted to the chaos going on in europe because they feel the deal will get done. >> maybe that is a little optimistic. more doomsayers' on the deck of return but let's talk a bit more about what greece is asking on this latest request, three bailout promising to the economic reforms in place early next week including those, and meet the payment on july 20 fifth, $3 billion, stress the word hopes. his the language has been toned down a bit. it was on june 30th they asked for a two year bailout and that was rejected. the pc be governing council will

hold a teleconference, up to increase the emergency funding to greece, very unlikely that will happen. greece needs to come up with the new plan by tomorrow. and a summit on sunday all 28 countries, that includes those that don't use the euro, up to them to decide whether greece is showing enough desire and credibility to make the economic reforms needed in order to get their much-needed financial lifeline. at this stage, 50/50 at best. maria: i will be watching that, ashley webster on the ground in athens, tune into neil cavuto at 12:00 p.m. eastern, he will talk with nigel faraj. another new deadline for greece. has anything changed? >> the only thing that changes is the media. obviously will get to the point where the communists have to compromise.

that is fine but one thing you can't continue rep is growth. everything going on, we can be as manic and crazy about what the futures are doing but we can step back and say what is going on? secular stagnation in europe, developing cycles flowing in the u.s. of the stagnation not going away in china. all of this is happening right now and if your catalyst is the next central plan which is what greece is trying to achieve that is not an investable thesis. hopefully you will narrow this, nail the timing of it all but on the way down you have to deal with lack of the number one thing that matters which is growth. maria: call at a time you will see second quarter earnings kickoff when alcoa reported second quarter. >> earnings growth will be down 5% year over year but it can be better than that. maria: exactly. is easy capital earnings expected to be down 4%.

>> it will be an investorable thesis. maria: maybe the other side better than the worst case scenario but it is interesting when you have going on because the fed minutes coming out and out, reporting tonight in the face of what is going on in china the aluminum companies you have to look than them. >> look at these global cyclicals reporting numbers. >> an interesting period not only today but going forward if this thing stays low and slow for a while. the greece thing i've learned as a ceo never ask a question if you don't want to hear the answer. i you happy with your pay and benefits? no. when you ask the public the want to give up your pension, obvi s obvious, a crazy thing to do. maria: gdp of the pension. >> the leadership needed to stand call and make the right decision. >> i think so.

now, what is he thinking when he looks at commodity crashes, crashing the crash? and you are saying most u.s. naval gazers would say europe is more screwed up and we are, i would agree with that but if you think the solution is for the europeans to print, that is a strong dollar environment which is bad for anybody. maria: and -- >> if you sell commodities your selling price is going down and margins are compressing, pretty basic and that is huge, if you look at the basic material stocks it is linked to inflation expectations the worst performing stocks of last weekend have. >> you by input material here and the market crashes so you have the dell says that you have got to of storm financially. it is a big problem. maria: the chart of alcoa, the company reports earnings at the close kicking off the second quarter. we have seen anticipation of what we might expect. >> i need to be the poor analysts that has to tell his boss is best idea is alcoa.

good luck. >> a short break and u.s. markets under pressure as china stock market sinks further into a bear market territory, the latest next, coming got next hour, the man standing by donald trump picking up on what nbc and univision put down, stay with us as we speak with real channel chairman and ceo on the usa pageant. a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

trade down this morning with exception of europe in other news this hour one american giant reportedly planning more job cuts, cheryl casone with the headlines now. >> good morning. we are now going could to keep an eye on microsoft as well when markets open 9:30 company reportedly to announce a major round of layoffs as early as today. the "new york times," reports the new cuts are expected to hit microsoft hardware and smartly phone units, new cuts on top of 18,000 job cuts microsoft announced, last year, maria one of those companies with china exposure

many things to watch with microsoft, also, subway, has suspended its relationship with fogle after agents raided his home as part of a child porn probe two months after he former director of folkel's charity stephed on child porn the lawyers say fogle is cooperating not charging with any crime, and this happened overnight, walt disney world confirj removing a bronze statute of bill cosbey from the park economy television arts and science hall of fame plaza day after the soernd press reported cosbey admitted 10 years egg got quaaludes with intent of drugging women he wanted sex with. >> more on market, futures are down but off the worst levels of the morning, the wake of the plunge overnight in china how do you protect yourself amid turmoil, the vice

chairman portfolio manager charlie thanks for coming. >> delighted to be here. >> when you see a market that is trading down, expected to have a weak open, what do you want to do as investor on the day like day. >> we are value investors in china wasn't cheap when it was 15% lower went up hundreds now down 30 trading not investing not a value investing. >> you don't have exposure in chiern. >> absolutely not it affects things we don't biggest blairs of raw material cars companies like yum not irrelevant not investable. >> are you expecting those areas to take a hit because big we see things are slowing. >> i think -- china has growth has been slowing from very big numbers before 9, 10, 11 to 7, 8% but as still big plierz of commodities they have impact most importantly on copper use

a lot of coal still matter but a lot of this is retail investors stocks in china not as wild owned as u.s. affects a smaller number of people than in u.s. >> yum a great point if you are value buyer of yum buying yum during slowdown not like chinese slow adown is new from 13% to made up 7% number you do find kind of top-down growth opportunities, i would assume in stocks like at a are there other stocks that you still see, kind of like hard to find value stocks obviously. >> there are players like this, yum. >> chart of yum everybody looks to a great -- >> they have been opening stores throughout china so we are talking about second derivative decline growth 7, 8 we say real nup 5, 6%. >> yum don't forget was nader

kentuckifried chicken fuel that got the yum stock created community centers families came together a great strategy, well executed, really drove the stock. >> china cabinet reiterated confidence of meeting 20125 gdp growth target 7%. >> the cabinet? well thank you to the cabinet! . >> what about that. >> turn on the news. >> are you broadcasting over there. >> do we not believe these numbers. >> i think that is part of the problem we don't really know what real a numbers are, as you alluded to but the other is what our can you exposure as u.s. investor a what our s exposure is to china if this growth story or lack thereof continues how exposed are we every day talking about how much he foreign investment in u.s. corporations over there.

>> there are names -- he yahoo! because of the alibaba, coming down, so that is a problem, when you apply a stock, because it has have an inflated component that is oven not good argument to buy stock. >> alibaba a certified train wreck for mainstream media not to name names a pretty prolific place in new jersey saying you go to the buy alibaba because of china. i mean -- that was one -- if there is one bubble story that had a tagline beside it, that might be something we look back at the biggest market cap on ipo day ever you can't see to sandra's point what is alibaba at 20 times revenue? structure of the company was in question, because they have all units you weren't sure where wrvn was flowing the point the whole idea what impacting as a result we may not see big portion of america invested in china obviously but seeing indirect impact,

from companies, that have put their stake in the ground and have looked at china as the growth opportunity isn't that true. >> it is true, you will start to see that you mentioned earlier on earnings report coming out now we start to see that maybe even more third quarter reports. >> i do want to say a lot is reflected in some things, copper would be the one copper is already, way, way down. maria: he said to buy it. >> i happen to agree with him i think there are stocks -- cable, wire, a lot of cable inventory we think a lot of bad news on copper is already in a lot of stocks. >> i am going to slow this chart because important to show math china share of globally gdp 9 or 10% but share of growth is over 27%. so when they slow it gets mark to market it is a global growth slowdown part of the story you you can't ignore that i was going to say they are not slowing the rate

acceleration how do we know that we should believe these numbers cabinet saying we believe % growth. >> we trust yum roth growth in sales there are real indicators there are lots of companies with real accounting statements that are growing in china. >> i would say if cabinet feels pressure to reiterate top-down growth number there is a problem with the growth number. just saying. maria: good to have you on the show if you so much joining us what is smart money doing in athlete from greece and europe looking at hedge funds thou they are allocating capital want to look at europe the latest when we come right back. stay with us. ♪

>> welcome back the surprise outcome of super's greeks each of them referendum sent equity market tumbling the "new york post" is reporting, that the hedge funds are planning to load up on greek government debt once the market starts trading again bring in hedge fund research president ken good to see you thanks so much for joining us. >> thanks maria. >> first give is an update where most hedge funds are right now because i know they have a lot of exposure to what is going on in puerto rico, as well as in europe, can you give us a status check who is

getting impacted by these headlines of the moment. >> absolutely, so i guess you can say about june, that it comes in like a lamb goes out like a lion. it the good news is that he over all the hedge fund industry has completed the best half year performance relative to the s&p since 2009, the bad news is that in the month of june, you have a decline of about 1.3% for the industry so ebd on a note that was somewhat as many negative in that sense. >> is puerto rico a bigger problem than europe? >> no. i think european is the big problem, over all, if you look across the major markets and china is much bigger problem than either of those two things right now if you look over all industry wide, exposure to european equities has increased. exposure to -- to euroo currency has been short has

continued to be short. exposure to chinese equities has fallen obviously the chinese market is at this point, a well documented meltdown disaster, and over all, and our to oil has o gone from being short through the end of last year beginning this year, to actually being long, and that is certainly contributed to losses in the month of june. >> here is a secret about the hedge fund industry i hope nobody hears the secret the reality is when bata goes data beta train wrecked rick in the last -- we can 1/2 hedge fund performance goes down that is that changed or a bigger problem given the oversplooi of ledge if i understand not that you acknowledge that you got a lot of hedge funds chasing beta correlation on performance is massive. >> well -- the reality is that the neither exposure of the industry have come down over the second quarter. and i definitely are seeing

some buying on weakness that has occurred, i think what the trend filing strategies is maybe what you are referring to cpa strategies, sometimes, those strategies are going to do well as they did, in the latter part of 2014 early part of 2015. and sometimes when you see sea are reversal like in oil that is going to contribute to some negative performance -- >> that is may wheen call it b beta, car chasing whatever you want the reality is hymn funds are generally not henld they are long when beta moves oil energy stocks china europe one big he levered trade wouldn't you and hedge fund performance would deteriorate eye long side that erosion last couple weeks. >> that is what with a we've

seen as i was saying you do see buying on weakness there are different types of strategies, some that are more affected by bait to equitieta t other beta to oil other ones that are less so, i mean, the burlesque hedge fund sxroer concentrated in the u.s. has in a second order effect of what is going on in china what is going on in oil what is going on in europe, over all the story for the u.s. market has been, i said, good by being much less bad, and i think that is still where the bulk of the exposure is i are seeing strong performance in equity hedge strong performance in adventurism the bulk of the exposure there is. >> keith we have been wrorth what has happenedism right we have seen this somewhat spiraling down so where do we put money in the second half if -- if you know, keith is right we've got this correlation on beta what are you telling investors where should we put our money that

is what our vying audience wants to snow. >> absolutely. >> absolutely, i mean i think the key is to i mean right now, let's just think about china for a second as i said i think it is nothing short of a disaster right now regulators, trying to figure out how to raise capital to support the market reduce the amount of leverage, and how to restrict shorting activity, i think that is not an environment for retail investor to be anywhere close to that market. but in answer to the question i think that investors should stay the course with the strategies that have worked not focus on the last week or two weeks. but to focus on the longer erode period of time and in environme 2015 likely different than 3 or 4 years mid teen returns s&p i think people of the conviction that is not going to be the case you will actually do are better in equity hedge -- >> are you saying buy europe

hedge out your buy japan hedge out yen the strategies working is that what you are saying. >> yes i think -- well i think staying with funds that are increasing exposure to those is -- is a great way for investors -- we are complex trade. sandra: considering your entire business is hedge fund research one of the most noebl things you told me looking at commodities is that there has been a reversal in you institutional interest short to long negotiable moves, buying hedge funds in large commodities. >> that is the commodity trade right now i is oil trade the one driving performance more so than anything else. i think that you always have you always have certain -- there is exposure to agriculture as well i think that actually contribute on the short side. and -- in the month of in the month of june. and you certainly have

exposure to you occurrences that has been short euro i think they continue to be short the euro, and -- certainly as that changes we will let you know. maria: ken thank you appreciate the time we will be right back with the latest out of china, stay with us.occurren. .

chaos. . . maria: welcome back our next guest a former "the wall street journal" china bureau chief lived worked in asia 30 years now the chairman of the greater china region joins us on the phone, from beijing thanks very much for joining us, i know you are in a restaurant right now, out and about, in beijing, what is the sentiment on the ground given what we are seeing in chinese markets.

on the phone: smart guys got np ramped shares up average citizen got in government was pumping the market figured the governme garn tees the market stuck in it unhappy people got half shares are suspended trading, people can't get out the other shares o gone down 10% a day, this kind of a brave new world we have got a government here that is very tight on controls, and they've got a market that they don't know how to control because uncontrollable so this is really, really interesting. >> what do you attribute heavy selling to china to i recognize market up so much really no ferns what do you attribute this most recent upset. on the phone: i think just got beyond where the smart people you know, know time to get out make money, and the people who followed in were going to lose almost kind of a classic pattern. this -- the government here

was kind of bumping that they would have a 3 to 5 year market based on entrepreneurship what they didn't tiek into calculation chinese people are gam blers inspect lateors to the going to sit you around going like hello everybody at once. >> i love that jim, the one way or the other pumping you used, would you call it a wufpump and dump there are enough people upset about i.e., losing joanne whether gambler or not to have some kind of a social reaction? >> you know, that i think we are all waiting to see what happens with that, but this is -- you know this government, is very, very tight very authoritarian will put around the broke remaininges doing everything to control it, this -- >> came into office with --

economy a huge pile of distortions has to straighten out market is one -- to help straighten it out you can't control the market. maria: thank you so much for joining us, wonderful to see you thank you so much for joining us. >> thank you. maria: we'll be right back. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business.

maria: hi good wednesday morning i am maria bartiromo, it is wednesday, july 8th china the breaking news story of the morning, and overnight securities reports warning of a panningic sentiment half of the chinese market on trading halt shanghai down almost 220 points that is a decline of 6% it had been down as much as 8%, u.s. futures reacting to the news this morning as you can see we are expecting a weaker opening from broader averages looking at a market off the worst levels of the morning though with me on set this hour hedge ico steve mc.

>> sandra smith, monica crowley we get to everybody in a mament first news on china, the stock market there tanking, the market plunging further overnight adding to losses of the last three weeks, despite moves by regulatory to stop the sell-off, tracey is live in beijing with the details, good morning. reporter: good morning maria, well really, really bloody picture here in asia china stock crash rippled the markets to the pointed that no one is talking about greece anymore, shanghai composite dropped 6% despite policy after o spoil trying is to shore up confidence let me remind you 43% of all companies on shanghai stock exchange 13 month companies halted from trading really hoping to sit this one out until things calm down a bit, of course, the markets also caused selling frenzy over in hong kong, the hang seng dropped to 2100 points also over 6% to mark biggest single-day loss in the history

of the markets caught between greece's debt crisis, and plunging markets in tokyo japanese stocks to south, nikkei laos more than 3% much stronger yen hurt exports in south korea kospi marke 4 day solidifying streak losing 1.2% as well, back to you maria. maria: thank you very much bring in charles payne host of making money with charles payne good morning to you, what is behind the o sell-off in china. >> you know in proper incentivize 150% one year we heard reports as many as 1.4 million medium joining the market every single week i would love to have been a broker taking those accounts -- you know carpel tunnel back in the day 4 million in a week hold on -- one second, now. but, having said that -- listen we know the composite of people 60% not even high school graduates, i found it interesting chinese government

he encouraging or allowed it i think has nothing to do with the economy, they had to band macau maybe they needed outlet stop letting people go to macau so long i think it was stupid misguided watching earlier i think premature for us to dance on the -- of china i homes think next 100 years would be all about china japan lynda asia bcompetitor to america hiccups come with territory we've been waiting for china to implode over a decade like now i just heard story on fox and friends 21% of americans on food stamps or welfare we are glowering about china having a pullback we need to be careful. maria: great point china has had stock, 51% frozen the finance minister seeking 500

billion yuan to support market china odds central state owned companies not to cut listed shares retail sales down first time in over two years. >> if you want something to do grave dancing on u.s. economy politics or europe i am your man. >> dancing shoes. >> the world is -- at the globally problem you are right you can't just call it china, for making some series mistakes from capital markets perspective this is aing classic pufmp and you dump disguise a slowdown with capital smashth activity. >> i don't understand they have to you pump money to keep losing going or -- who are you following a we know what is behind it, there sort of a stroll we saw big tall behinds they've arrived everyone kind of knows the deal that is what i don't get. >> trying to they are doing the right thing, they need to actually get to some form of a they don't have today a free

market that is -- the trade to capital can flow in and out of makinging the step because they have to are expediting where they need to go. >> a classic pump an dump means people at top know what is going on they are applying when it is pennies, selling what you think is happening when it is dollars, is that